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Perspectives March Newsletter

Perspectives Climate Group shares recent announcements with you from Q1 2022!

Key messages:

Perspectives leads multiple research studies with international governments and has published various reports on carbon markets

 

Updates on key projects and latest events 

Launch of the International Initiative for Development of Article 6 Methodology Tools (II-AMT)

International carbon markets under the Paris Agreement can start following the adoption of the Article 6 rulebook at COP26 in Glasgow. However, there are no agreed methodologies to calculate baseline emissions and monitor emissions mitigation under Article 6. Therefore, Perspectives Climate Research is coordinating international work by a group of leading independent experts to develop Article 6 methodology tools throughout 2022. These tools shall be combined with baseline and monitoring methodologies that have been used under the Kyoto Protocol’s Clean Development Mechanism (CDM). The International Initiative for Development of Article 6 Methodology Tools will therefore enable Article 6 activity developers and regulators to use the large stock of existing methodologies while respecting the principles and approaches of Article 6. The conceptualisation phase for the initiative will run until April 2022 and results will be published. For updates on the initiative, please check here.

 
 

Perspectives Climate Research leads policy brief on climate clubs in the context of the German G7 presidency

Perspectives’ Axel Michaelowa and Philipp Censkowsky are leading the elaboration of a policy brief on the design of climate clubs in the context of the ThinkTank7 process providing input for the German G7 presidency. The policy brief discusses how collaboration of countries in the context of a climate cub, a concept launched by the German government in 2021, can be made inclusive and involve the use of international carbon markets. A key challenge of such clubs is the way how they protect internal carbon pricing against international competitors through border adjustments. The group of authors includes researchers from the Kiel Institute of World Economy, the German Energy Agency and the German Institute for Development.


ECBI Key Cop26 Outcomes report

A new report by ECBI assesses the outcomes of the Glasgow Climate Summit on the level of political ambition it achieved as well as what it delivered on finance, loss and damage, transparency, common time frames, Article 6, and adaptation.

The report explains and evaluates key formal COP and CMA decisions, as well as the pledges and promises by various coalitions on issues ranging from coal to cars, methane to forests.

Authored by experts with many years’ experience following the UNFCCC negotiations, including Perspectives authors Axel Michaelowa and Aglaja Espelage, the report features quotes and insights from ecbi’s network of negotiators and delegates who attended COP26.

Read the full report here.

*Photo courtesy IISD/ENB | Mike Muzurakis


Reducing emissions in Georgian buildings – designing an Article 6.2 pilot with Switzerland

Perspectives has been commissioned to develop a mitigation activity design document (MADD) for a programme to mitigate emissions from buildings in Georgia. Together with its partners TNC, who developed the Swiss buildings efficiency programme in the 2000s, and the Georgian Energy Efficiency Centre, Perspectives will elaborate an approach including calculation of the mitigation and designing the financial instrument(s) underpinning the action. Large parts of Georgia’s building stock date from the Soviet period and have notoriously high energy consumption. Georgian buildings legislation is now aligned with that of the EU, but finance to actually achieve high energy efficiency in new and refurbished buildings is lacking. The programme is undertaken by the Swiss KliK foundation which is the Swiss vehicle to develop Article 6.2 pilot activities. In 2021, Switzerland and Georgia had signed a bilateral agreement for cooperation under Article 6.2.
 


Perspectives provides input on international carbon markets in high-level Indian government consultations on domestic carbon market design

On 29 January 2022, Axel Michaelowa provided recommendations on how India could connect its envisaged domestic carbon market with international carbon markets in the context of a consultation of the Indian Ministries of Power and Environment with over 100 industry representatives. India, which had been a leading player under the Clean Development Mechanism, had remained on the sidelines until COP26 took decisions on Article 6 rules last November. In the consultation, industries pushed for a strong engagement of India in the Article 6 markets. Since 2021, Perspectives together with Deloitte has been supporting the Indian Bureau of Energy Efficiency to elaborate the design of a domestic voluntary carbon market.


 
 

Perspectives supports the FAO regarding its engagement in carbon markets

The FAO as leading multilateral organization for agriculture, forestry and fisheries has commissioned Perspectives to support it in the assessment of its internal activities with relevance of carbon markets. The project led by Marjorie Menard will provide an overview of the different carbon markets, covering both compliance and voluntary ones. Moreover, it will assess to what extent the markets cover activities in the sectors addressed by FAO. It will also be studied where the niche for FAO to engage in the carbon markets could lie. Perspectives developed the first approved baseline and monitoring methodology for the agricultural sector under the CDM in 2013 and thus has played a pioneering role in the sector.


Study on military and conflict-related greenhouse gas emissions commissioned

Perspectives has been commissioned by Tipping Point North South, a UK-based NGO, to elaborate a study on greenhouse gas emissions from the military and armed conflicts and their treatment under the UNFCCC process. The study will be fed into the UNFCCC negotiation process. Axel Michaelowa and his co-author Tobias Koch have been the first experts worldwide to address this topic in a research article in the renowned journal “Climatic Change” in 2001. As the Russian invasion of Ukraine shows starkly, military action and its emissions are a non-negligible part of the climate change problem.


Defining adaptation beneficiaries for the Green Climate Fund – improving methodologies

Perspectives has been assigned by the Green Climate Fund to improve the current methodologies applied to assess adaptation benefits of GCF interventions. To date, activities do not have to define what is an adaptation benefit, and accredited entities are applying widely varying approaches to calculate “adaptation beneficiaries”. A team led by Marjorie Menard is looking at ways to ensure that only material benefits are actually accounted and not just all people living in an area in which an adaptation project is undertaken. Perspectives also checks for a sample of projects how calculations have been done in the past and how numbers would change if the new approaches would be applied.



Start of the work of the Carbon Market Mechanisms Working Group in 2022

With a first meeting in February 2022, the Carbon Market Mechanisms Working Group (CMM-WG) kicked off its work in 2022. The CMM-WG will continue focusing on strengthening the expert dialogue on technical aspects of regulating and implementing market-based cooperation under the Paris Agreement, following the adoption of the Article 6 rulebook. Key topics will be the operationalisation of the methodological requirements of the Article 6.4 mechanism and practical considerations to advance Article 6 collaboration, beyond the aspects of the Article 6 rulebook, for instance effective coordination of capacity building activities or equitable sharing of benefits from carbon market engagement. Stay tuned for upcoming workshops and papers. Information will be provided in due course here.


 
 

Upcoming events:

Perspectives will be at the UN Climate change Bonn Conference this June and innovate4climate (i4c) workshop held on may 24-26, 2022 discussing strategies for artcle 6, the road from glasgow and green hydrogen

Find out more information on I4C here.


Perspectives is Hiring!

Join our growing team of climate change professionals!

Business Field Coordinator “Carbon Market Mechanisms - for public sector clients”
Application deadline: 1. April 2022

Contact: hr@perspectives.cc

Read more here
 

Business Field Coordinator “Carbon Market Mechanisms”  for private sector clients
Application deadline: 1. April 2022

Contact: hr@perspectives.cc

Read more here

Student Web Developer
Application deadline: 1. April 2022

Contact: hr@perspectives.cc

Read more here

Research Services: Case Study and Stakeholder Engagement support – Direct Air Carbon Capture and Storage (DACCS)

Application deadline: 30. March 2022

Contact: arenz@perspectives.cc

Read more here